Government agencies and Congress say they want new companies in the federal market.The Office of Management and Budget recently announced the RFP-EZ project to make it easier for tech innovators to offer their solutions.Numerous small business set-aside and preference programs exist.Federal agencies are roundly criticized for missing targets in this area, which has caused Congress to propose new, higher benchmarks.

Yet, if a new, small company came to me today and asked whether I thought this was a good time to enter the federal market I would have a hard time giving a positive answer.Like a teenager in his first romantic relationship, the government can give mixed signals about what it wants from a partner, or even whether it wants a relationship at all.Unless the business itself is 100 percent committed to “making this work,” success in the current market could be elusive.

Recent remarks from the government’s chief of acquisition policy are just the latest example of this ambivalence.Joe Jordan, administrator of the Office of Federal Procurement Policy, told an industry audience, “For every procurement that shouldn't have been set-aside, I can show you 50 that should have been but weren't."

Jordan, who previously served at the Small Business Administration, made it clear that small business participation and success are an important part of his platform.

Yet, later in the same address, Jordan stated that increased oversight and compliance are also going to be a part of OFPP’s plan.A recent blog post touted the increased number of companies that have been temporarily banned from doing federal business.So, the government wants you as a supplier until the moment you appear to step out of line and then – out you go with little or no opportunity to tell your side.

It’s not just Joe Jordan, who really is a nice person.There is plenty of other evidence that this is no market for first-timers or undecided businesses.

Sequestration could cut government spending across the board starting in January.These automatic cuts could reduce agency budgets by 10 percent or more.That is on top of what is already an anemic market.Regardless of whether sequestration actually happens, the federal market is definitely not growing and, in most places, does well just to tread water.

New rules also increase the costs of doing business with the government, limiting the market to companies that can absorb the costs and tweak existing systems to stay in compliance.For new and smaller businesses, complying with things like the Mandatory Disclosure Act, executive orders on sustainable procurement, uncompensated data collection requirements from customers and similar government-unique requirements often present a mountain that few can climb.

Before your company enters or expands its federal market presence, do more than listen to “we want you” platitudes.Understand the unique costs involved, whether agencies have money to spend with you and what stakes are involved if you don’t comply with the rules.If you do decide to enter the market, make sure it’s with both feet and a clear understanding of the facts.

Larry Allen is founder of Allen Federal Business Partners, an Arlington consulting company and the former president of the Coalition for Government Procurement.